| | By Mick James
Crossing the Atlantic-in either direction-is one of the most exciting but risky journeys a consultancy can undertake. In the last few years we've also gone from a relatively stable grouping of global consultancy firms to a situation where some major brands are having to make some scary decisions about their transatlantic positioning. Capgemini, for instance, is aggressively rebuilding in the USA, while Bearing Point is rapidly filling the hole in its network left when the UK consultancy practice of KPMG was acquired by Atos Origin. Meanwhile a host of smaller firms are taking the opportunity to move their IP into new markets.
But which transition is easier? And what are the challenges in managing a transatlantic consultancy. I spoke to marketing consultant Allyson Stewart-Allen, the founder of International Marketing Partners Consultants, and author of Working with Americans. Formerly a consultant with Hay, PA and Price Waterhouse, Stewart-Allen has forged a career out of advising UK firms about moving to the USA, and vice versa.
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"I think its probably easier going west," she says. "If you're a European firm it's much easier for you to get your head round the American market than for Americans to get their heads round Europe."
Stewart-Allen says it's easy for US firms to underestimate both the diversity and the dynamism of the 25 EU member states.
"They try to apply a template and get upset when it doesn't apply across the board," she says. By contrast the more homogenous US business culture means that a European firm can work the same way pretty much anywhere in the States.
"It's much easier for Europeans to work with the American monoculture than for Americans to deal with Europe's multiple cultures," she says.
Not only that, but many industries in the USA are highly clustered, offering a target-rich environment of clients within easy reach:
"If you're in financial services then New York is your starting point," says Stewart-Allen. "If it's media and entertainment then you'll want to start in California."
However, European-and particularly UK consultancies should not be overconfident about | |
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| | the ease of "breaking America"
"This is the trap a lot of UK consultancies fall into, they want the US to be a lot like the UK," she says. "Because the language is similar they think there's a lot of Anglo-Saxon DNA in there and there's not. The hybrid that is the USA is a bit German, a bit Scandinavian, a bit Latin but mainly it's its own indigenous and alien type like every other culture. You should assume it's as foreign a marketplace as China."
Views of time, for instance differ radically across the Atlantic:
"In the States there's far less tolerance for people to respond," says Stewart-Allen. "In the US, 'promptly' means within 48hours. In the EU it can be up to five days. If they haven't heard back from you in the States by hour 49 they assume you're not very hungry, not very ambitious."
Another area is business continuity:
"In the US the business world doesn't come to a stop because it's a holiday," says Stewart-Allen. "We hand things over to other people to make sure there's continuity of service. Over here, if someone's out of the office it's tough, | |
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| | no-one's been briefed, there's no handover."
Even within the consultancy world there are major differences, such as the reward structures:
"In the US, consultancies have an 'eat what you kill' approach," says Stewart-Allen. "In Europe what happens is more of a lock-step system where you pay more in line with the length of tenure with the firm."
The key says Stewart-Allen is to appreciate that "difference is difference" and to work to achieve a cultural alignment within the firm.
"Three-quarters of the failures of joint ventures and mergers are because of cultural differences," she says. From the client perspective, what's important is to deliver a consistent brand and a consistent customer experience where it matters, but to tailor it where appropriate.
"We see intellectual property travel around the world," says Stewart-Allen." The IP or business models will apply more or less everywhere, it's the way they're localized and delivered. You can have a virtual team, provided the team is synchronized and is driven by the client's | |
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| | expectations-you have to let the clients define the agenda."
This doesn't mean that European consultants have to pretend to be Americans, or vice versa:
"Very often the fact that consultants come from another culture is an asset, they bring a fresh set of eyes," says Stewart-Allen. "Consultants that aren't promoting that fact and telling their clients it's a benefit are missing a huge trick. One of the things that my clients know is that I'm not British, I have a different perspective and way of analyzing things and that is a huge value-add."
Using your outsider status can have its advantages:
"I can say things like 'I know this is terribly American of me, but what's your budget'," says Stewart-Allen. "If you were British that would seem crass-but I get an answer."
The main thing as a transatlantic consultant is to be yourself, she says.
"People will take you for what you are. Being culturally sensitive and adapting to cultures goes a long way, you don't have to lose yourself."
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